Google has reversed its long-standing ban on betting applications being available on the Play Store in Brazil, a move that is expected to significantly impact the country’s burgeoning regulated online gambling market. This policy shift comes amidst ongoing controversy over recent tax hikes imposed by the Brazilian government on the betting sector.

Google notified advertisers earlier this week that it has modified its gambling policy, now allowing betting, casino, and fantasy sports apps to be listed on Google Play. Under the new rules, operators must hold a valid SPA (Secretariat of Prizes and Bets) license to use the Google Ads platform and provide detailed information to gain certification from Google. Prior to this change, Google had only permitted apps for horse racing and lotteries from Caixa Econômica, the federal bank.

Campaigners and industry stakeholders had consistently argued that Google’s previous restrictive policy inadvertently emboldened the black market by preventing licensed apps from reaching a wide audience. The Brazilian government reportedly believes that this policy change will contribute to reducing the impact of illegal betting websites by channelling more users towards regulated platforms. The new Google Play policy covers four specific categories: Lotteries, Horse Racing, Betting Tips, and Daily Fantasy Games. Operators are also required to maintain a visible and functional link on their official websites that directs users directly to the app’s page on the Play Store. In contrast to Google’s updated stance, Apple continues to maintain a ban on betting apps across its own App Store.

Brazilian Tax Hikes Spark Industry Outcry

This positive development for the licensed market arrives amidst significant financial pressure on operators. Brazil’s Ministry of Finance recently published a new Provisional Measure (MP 1303) that substantially increases the tax rate on online betting gross gaming revenue (GGR) by 50%, raising it from 12% to 18%. While the Provisional Measure was published on June 11, 2025, and is legally effective immediately, Brazilian law dictates that the increased tax collection from operators will only commence from October 1, 2025. The measure is currently valid for 60 days but can be extended for another 60 days, during which period it will be considered by the National Congress. If approved by Congress, it will be enacted into permanent law.

Understandably, industry stakeholders have expressed strong indignation regarding the tax hike. The Brazilian Institute for Responsible Gaming (IBJR), a prominent industry body, conveyed its “strong indignation” through a statement published on its social media channels and has publicly threatened legal action to fight the change. The IBJR stated that “The measure is unacceptable and makes the operation of many companies - which trusted and invested in the regulated market - unfeasible, creates legal uncertainty, and threatens public revenue.” The IBJR also highlighted that operators had already acquired five-year licenses for R$30 million, based on the original 12% tax rate. Changing the rules mid-contract, the institute emphasized, “undermines the economic and financial balance, and erodes trust in the regulatory system.” The IBJR has also warned that increasing the tax burden may lead to the illegal market expanding from its current estimated 50% share to at least 60%, which could result in an estimated annual loss of over R$2 billion (approximately $365 million) in public revenue. The institute contends that “Increasing the tax burden on legal operators is not the path to revenue growth. The focus should be on combating illegal gambling and protecting players through effective regulation.”

The dual developments of Google’s policy reversal and the new tax measure create a complex landscape for Brazil’s newly regulated gambling market. While increased app accessibility is seen as a positive step for legitimate operators, the rising tax burden could challenge their viability and channelisation efforts.